...Asahi Breweries Introduction Asahi Breweries is Japanese beer producer with a long history of operations since 1949. Prior to 1949 Asahi Breweries was a part of Dai Nippon, a large conglomerate of dif-ferent companies. After the defeat in World War II the allied forces forced Dai Nippon and other dominant companies to split. Dai Nippon Breweries was split into Sapporo Breweries and Asahi Breweries in 1949. At the time of split there were three major players in Japanese beer market – Sapporo Breweries, Asahi Breweries, and Kirin Breweries. Each of the brewer-ies roughly occupied about 1/3 of the market share. However in 30 years beer market in Japan has changed. Kirin Breweries was the biggest mover in the market during that period having increased its market share from 25.3 percent in 1949 up to 63.8 percent by 1976. Japanese culture is characterized by conservatism in everything even in beer. Lager beer has been the most popular kind of beer in Japan and by 1980s Kirin’s had used its commanding market share to capitalize on the lager beer and Kirin’s pasteurized lager beer became the industry standard. Asahi breweries in contrast were in a downward spiral – sales have been decreasing, expired inventories became a major problem that led to laying off 550 employees out of total 3200. Analysis Asahi Breweries were able to turn things around with the help of revolutionary presi-dents – Tsutomu Murai and Hirotaro Higuchi. Tsutom Murai became a president of Asahi Breweries...
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...Asia Brewery 1. Short history/Milestones With Lucio Tan’s predominant desire to improve the Filipino beverage standards, he started out Asia Brewery, Inc. (ABI) and launched its first brand, Beer Hausen Pale Pilsen, in January 27, 1892 in Cabuyao, Laguna. In 1995, Manila beer was introduced, and 3 years after, Beer Pale Pilsen (now known as Beer na Beer), its most successful and most controversial brand, was launched. Due to the growing demand in the Mindanao market, ABI established its second brewery at El Salvador, Misamis Oriental, with a capacity of 2 million hectoliters of beer per annum. In the same year, the company expanded its product line from beer to non-alcoholic beverages, with the introduction of Summit Natural Drinking Water and Absolute Pure Distilled Drinking Water. The company further expanded its product line by introducing Colt 45, America’s Premium strong beer in 1995, which opened doors to many strong beer brand. In 1999, Beer na Beer was reintroduced in the market and won a gold medal in the Monde Selection in Brussels, Belgium. Pacific Iced tea was launched in the same year, which strengthened the position of the company in the market. In 2006, 100 Plus Isotonic Sports Drink and Cobra Energy Drink, both were targeted towards individuals with an active lifestyle, were launched. Further expanding its product line, the company introduced Coors Light and Coors Original in 2007 and Summit ZeroCal in 2008. Tanduay Ice was launched a year after, and the...
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...Heineken to understand the host country’s policies and laws especially dealing with alcohol. There was an example with Egypt where Muslims are forbidden to drink alcohol and it is obvious that Heineken did their research because there was an option in producing non-alcoholic beer. • Sociocultural Differences – Sociocultural differences should also be considered when assessing foreign market. In many cases firms will attempt to minimize the potential impact of sociocultural differences by initially focusing on countries that are culturally similar to their home markets and that is what Heineken did. It imported beer to Spain, Italy, England and Germany. • Evaluating Costs, Benefits and Risks – there was an example where Heineken could buy breweries in the United States and produce it there which would lead to reduction in production cost but they didn’t want to make same mistake as Miller and lose their main advantage as an imported beer. Also a firm entering a new market incurs the risks of opportunity cost and direct financial loss due to misassessment of market potential. 2) Discuss the advantages or disadvantages for Heineken of exporting its beer from one country to another? Some of the advantages are: • Acquire Resources and Compete with Rivals...
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...Five Force Analysis: Supplier Power The beer market’s prime suppliers are farmers. Most breweries buy their supplies on the relevant countries’ futures exchange. Hence the branch has an opportunity to diversify its risk by trading futures contracts as well as hedging other risks. Various farmers supply the hops, barley, corn and rice used to produce beer. In 2008, there were 2,053 companies that purchased these ingredients. The overall beer industry sold nearly 206 million barrels of beer in 2009. For major brewers, the volume of ingredients purchased, the large number of farmers available to purchase the ingredients from, low switching costs on the part of the brewer, and inability of the farmers to forward integrate, supplier power in considered low in regard to the major brewers. Craft brewers who purchase fewer ingredients and sometimes more specialized ingredients may cause supplier power for this segment of the industry to be somewhat higher; yet, overall, suppliers have put limited pressure on price and supplier power is LOW. There are only a few large suppliers of aluminium cans, plastic and glass bottles, which increase the supplier’s bargaining power. However, taken into consideration largest brewery companies existing we can assume that the suppliers of those goods have a incentive in taking care those as a customer and will therefore provide them with the best possible price, in order to keep them as a customer. Competitive pressure from supplier bargaining power...
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...Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch, 2012). After nine years, D’Oench sold his half of the business and Anheuser became the sole owner of the brewery. Eberhard Anheuser’s son-in-law, Adolphus Busch, immigrated to St. Louis Missouri from Germany years prior to marry Anheuser’s daughter. Busch served in the American Civil War and shortly after that became a salesman for the Anheuser brewery. Adolphus Busch...
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...Case: Boston Beer Company Address the following questions in a 4-5 page write-up of the Boston Beer Company Case to explore the issue of Initial Public Offerings. 1) What do you think of Boston Beer’s business model relative to the traditional beer companies’ business model? Relative to Redhook and Pete’s? (Hint: consider their brewing, production, distribution, marketing strategies. How is each firm attempting to achieve its own sustainable comparative advantage in the market place?) 2) Evaluate Boston Beer’s performance relative to its peers (Compare BBC's ratios to the ratios of its peers in exhibit 4). (Hint: how do differences in operating strategies translate into differences in financial ratios? Are there any downside risks to BBC's contract brewing strategy?) 3) What is your assessment of the intrinsic value of Boston Beer’s stock at the time of the case? What should be its IPO price? (Some hints below: First, you should look at the P/E multiples for Pete's and Redhook around the IPO time for BBC. You should also look at the average amount the price seems to jump on the day of the IPO, and the EPS of BBC for 1994 and 1995. From this, you should figure out what the implied price per share for BBC should be in this market environment. Second, you should try to justify this price per share by doing FCF analysis. Create a ten year pro-forma spreadsheet, projecting out barrels of beer each year, revenue per barrel, revenue...
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...considered mutual and compatible in this approach, instead of simply addressing them as separate things. In other words, one need cannot be gained at the expense of the other (Human Resource Management... 6). The human resource manager in charge of the corporate office of a large brewing company, and also the manager that I interviewed, is Lori Fulmer. Mrs. Fulmer is the benefits and risk manager of Gordon Biersch. Organization Information Dan Gordon and Dean Biersch founded their first restaurant in Palo Alto in 1988. What began as a single restaurant brewery collaboration soon turned into a chain. A little over two years ago, Trolley Barn Breweries Holding Company, which consists of many Big River Grille restaurants, Rock Bottom, A1A Ale House and Seven Bridges Bar & Grille, purchased the rights to the Gordon Biersch restaurants. The new company still retains the Gordon Biersch name. The two founding members still run the brewery based out of Las Vegas, Nevada. The lucrative merger blends the West Coast brewing style, which uses the unique German style of brewing, with the one of a kind microbreweries of the East. This merger...
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...New Belgium Brewery 1) What environmental issues does the New Belgium Brewing Company work to address? How has NBB take strategic approach to addressing these issues? Why do you think the company has taken such a strong stance toward sustainability? New Belgium Brewing Company strives to take an environment friendly approach to their manufacturing process and facility, focussing on reducing their carbon footprint and energy usage. They were the first-ever American brewery to fully incorporate a wind turbine as a power source versus the burning of coal. Other approaches included the addition of a steam condenser to recycle hot water for use around other areas of the plant and sun tubes which utilize natural sunlight to light the plant. Furthermore, their used hops and barley are saved for the use of feeding area livestock instead of being wasted. Employees are also encouraged to be individually conservative by riding their gifted “cruiser bikes” to and from work. It is our belief that the founder, Jeff Lebesch’s own personal values and love of the outdoors contributed to the company’s strong stance on sustainability. A long side that is the fact that adopting such sustainability measures will help to increase their bottom line. 2) Do you agree that New Belgium’s focus on social responsibility provides a key competitive advantage for the company? Why or why not? We believe that New Belgium’s emphasis on social responsibility provides a key competitive...
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...brewers don’t offer, tempting Americans to choose one. What people don’t realize is that America has a lot of good quality micro brewed beer that comes in more flavors and styles than imports have to offer and is a better quality beer. With the craft beer market rising rapidly in the United States, there is a colossal variety of tasty brew to be had. The trademark of craft beer and craft brewers is innovation. When people accuse American beer of being dull and boring, the first thing that comes to mind is big name breweries like Budweiser, Miller or Coors. Al Davenport says “What they don’t know is that the U.S. has an extremely rich and diverse craft-brew industry that produces, by many accounts, some of the best, if not the best, beers on the planet” (Davenport, 2012). Top American microbreweries like Shipyard, Dogfish Head, Stone and Sierra Nevada brew at the level of excellence beer enthusiasts’ love and exceed the quality of the very best foreign breweries. Craft brewers interpret numerous styles with unique twists of flavors and develop new styles that have no comparison to any other beer. With all the new microbrews being created it’s almost impossible to not to find the same,...
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...1. How is the discovery of beer linked to the growth of the first "civilizations"? The discovery of beer led to the growth of the first “civilizations” because it offered a healthy way to hydrate the body and its production came from available food products, such as gruel. To provide this new drink and make it available to others, they began to farm and tend to their lands. It became of great cultural importance to hunter-gathers, which made the substance well known among communities after just a relatively short period of time. Beer was a secure form of liquid that gave beer drinkers many health advantages, which helped shape the minds and bodies of their future generations and aided in the growth of the first establishments. 2. What does this history of beer in the ancient world tell us about the early civilizations? The history of beer in the ancient world hints that many early civilizations understood the concept of “dangerous water”, water that had been contaminated and could cause health risks if consumed. It is what caused the swap from water being the most consumed liquid, to beer in some regions. It also tells us that civilizations valued quality just as we do now, due to the fact that they worked hard to improve its taste and texture of beer through the process of trial and error. 3. What sources does the author use to gather his information on the use of beer? Standage uses sources from the Stone Age period to find reliable facts and information on the ancient...
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...New Belgium Brewing has created a craft brew that is loved by many not just around the country but the world including myself. Although the taste is something that is quite pleasing to the palate I feel that there success can be based on two things specifically. The first would be their focus on energy saving and environmental safe brewing standards and then where they came from. Ryan Withall stated in his article with Sustainable Brands-The Bridge to Better Brands that New Belgium Brewing Company understands that if they want to sustain themselves for the long run and that will include "environmental initiatives, employee ownership, fair employment practices and active engagement with suppliers, distributors and the greater community" (2014)....
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...Beer statistics 2010 edition Table of Contents Table of contents ....................................................................................................................................................... p 1 Glossary and abbreviations ....................................................................................................................................... p 2 Foreword................................................................................................................................................................... p 3 Beer trends EU27 2003-2009 ................................................................................................................................... p 5 Beer production 2003-2009 (data) ............................................................................................................................ p 6 Beer production 2009 (chart) .................................................................................................................................... p 7 Beer Consumption 2003-2009 (data) ....................................................................................................................... p 8 Beer consumption 2009 (chart) ................................................................................................................................. p 9 Consumption per capita 2003-2009 (data) ................................................................................
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...ALRIDGE BREWING COMPANY Craft Brewing Goes Public In August 1995, Paul Shipman, the CEO of Alridge Brewing (AB) prepared himself to enter uncharted territory. A craft brewing operation had never before been taken public in the United States, and he and his management team were about to do just that. Sure, there were massive large-batch breweries like Anheuser-Busch and Miller Brewing Company that were profitable, publicly traded firms—but there was something different about Alridge: it embodied the ethos and grassroots beginnings of the microbrew movement, and Shipman was confident that widespread market demand for craft beer was set to explode. He and the team had steadily developed their premium-quality handmade ales for nearly fifteen years, and their loyal customer base was strong. In the last year alone, he’d forged alliances with both Starbucks (for the purposes of co- branding a coffee- flavored brew) and A-B that had purchased a capped 25% interest in AB in exchange for access to its national distribution networks and accounting systems. Shipman had overseen significant capacity increases, with plans on the horizon for yet another brewery in Portsmouth, New Hampshire. He had worked hard to position AB favorably for expansion, and the public offering would provide the necessary capital. But how would the “microbrew” feel of AB translate to the largescale commercialization and growth pressures of the open market? Producing and distributing microbrews on a large scale was...
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...Bresnahan, 1985; Elzinga & Swisher, 2005; Gisser, 1999) in response to the threats which the industry has experienced. In order to mitigate eroding market share: given the growth of beer imports, competition from specialty-craft brewers, a decline in sales of the leading domestic premium brands, and competition from new products and marketing methods, the leading breweries actively acquire successful micro-breweries and add its label to their portfolio of beverages (Aaker, 1996; Arens & Bovee, 1982; Belch & Belch, 2001; Elzinga, 2004). Similarly, the industry leaders utilize extensive advertising strategies to save market share and simultaneously attempt to alter their positioning and public perception (Assmus, Farley & Lehmann, 1984; Baker & Bresnahan, 1985; Grabowski, 1977; Kelton & Kelton, 1982; Nelson, 2005). In order to maintain their market share, the major breweries keep discount famous-name beers while introducing new styles of beer (light, ice, non-alcoholic) as well as employing various packaging innovations (Berger, 1988; Seiler, 2002). On a global scale, a number of European breweries have moved into markets in...
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...Craft Brew Alliance (BREW). They are a brewing company that is on the verge of becoming a true American craft brewer that is taking full advantage of the flourishing craft-beer industry. By definition there is only one publically traded American craft brewer. This company is The Boston Brewing Company (SAM). Defined by the Brewers Association an American craft brewer is small, independent and traditional. Craft brewers can produce 6 million barrels or less, less than 25% of the brewery is controlled by an alcoholic beverage industry company who is not a craft brewer and has either an all malt flagship beer or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor. Craft Brew Alliance is a small and traditional brewer, but 32% of the company is owned by Anheuser-Bush Inbev (BUD). The Boston Brewing Company has been herald to have made microbrewers relevant in today’s society. They are the standard for publically traded craft breweries and will be used for comparison in this financial analysis. Current Ratio: Similarly to SAM, BREW has shown an overall increase dating back from 2008. In 2010 a distribution agreement was reached with BUD, reducing current liability. This directly increased the current ratio. Debt/Equity Ratio: Ratios for both companies follow similar trends. In 2010, BREW opted to invest $8 to $10 million in brewing operations and supply chain. This is confirmed by the spike on the...
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